wiki_teachback_on_diversity_dkfandomcom-20200214-history
The Effects of Learning and Development on Diversity
Objective: Throughout this Wiki Teach-back, the reader will learn why diversity matters in the workplace and how HR can leverage existing government agencies to develop effective training courses that promote more diversity. Why Diversity Matters? According to an article released by McKinsey & Company in January 2015, companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians. The article included research that examined proprietary data sets for 366 public companies across a range of industries in Canada, Latin America, the United Kingdom, and the United States. In this research, McKinsey looked at metrics such as financial results and the composition of top management and boards. The findings were as follows: * Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians. * Companies in the top quartile for gender diversity are 15 percent more likely to have financial returns above their respective national industry medians. * Companies in the bottom quartile for both gender and for ethnicity and race are statistically less likely to achieve above-average financial returns than the average companies in the data set (that is, bottom-quartile companies are lagging rather than merely not leading). * In the United States, there is a linear relationship between racial and ethnic diversity and better financial performance: for every 10 percent increase in racial and ethnic diversity on the senior-executive team, earnings before interest and taxes (EBIT) rise 0.8 percent. * Racial and ethnic diversity has a stronger impact on financial performance in the United States than gender diversity, perhaps because earlier efforts to increase women’s representation in the top levels of business have already yielded positive results. * In the United Kingdom, greater gender diversity on the senior-executive team corresponded to the highest performance uplift in our data set: for every 10 percent increase in gender diversity, EBIT rose by 3.5 percent. * While certain industries perform better on gender diversity and other industries on ethnic and racial diversity, no industry or company is in the top quartile on both dimensions. * The unequal performance of companies in the same industry and the same country implies that diversity is a competitive differentiator shifting market share toward more diverse companies. Given the higher returns that diversity is expected to bring, diversity matters and companies should invest in ways to continuously expand and promote diversity in their workplaces. Which government agencies should HR partner with to promote diversity? The Equal Employment Opportunity Commission (EEOC) is an agency overseen by the executive branch of the federal government. It is responsible for enforcing equal employment opportunity (EEO) laws in an effort to provide all individuals a fair and equal chance to be employed regardless of race, color, religion, sex, age, disability or national origin. In order to do this, the EEOC works to investigate and resolve complaints about discrimination, gather information, and issue guidelines to employers. The EEOC issues various guidelines to employers to help minimize any acts of discrimination against potential and current employees. An example of such guidelines is the Uniform Guidelines on Employee Selection Procedures. This guideline identifies the ways in which an employer should develop and administer the system for selecting employees so as not to violate Title VII. By following the guidelines and processes imposed by the EEOC, HR professionals will be able to track and leverage key information on its workforce to develop and train its managers to promote diversity. Developing Training Courses for Managers: As HR professionals gather important information to comply with the demands of the EEOC, they will naturally be able to analyze and perform a needs assessment on its organization. Based on their findings, HR can take the following steps to develop effective training courses for managers to help promote diversity: # Provide assessment to trainees on their knowledge on diversity and compare their strengths and weaknesses. # Identify the key areas in which managers should change and improve, as well as implementing new processes in order to promote positive changes. # Create and define clear goals that are aligned with EEOC standards as well as HR's vision for diversity and inclusion. # Identify steps and guidelines that are easy for employees to understand, and equip them with courses and other interpersonal programs (i.e. coaching programs, etc.) that help properly guide trainees to achieve their goals. Content References: # https://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters # https://en.wikipedia.org/wiki/Equal_Employment_Opportunity_Commission # Noe, Raymond A (2016). Employee Training and Development. Seventh, Edition. New York: McGraw Hill Education. # Noe, R.A., Hollenback, J.R., Gerhart, B. & Wright, P.M. (2016). Managing Human Resources. Fundamentals ''of Human Resource Management Sixth Edition. New York: McGraw Hill Education 'Image References:''' # http://www.manpowergroup.co.uk/the-word-on-work/diversity-and-inclusion/ # http://rosace-coaching.com/why-diversity-matters/ # http://www.gallantteam.com/2016/04/06/return-on-investment-durango-real-estate/ # http://www.backdesk.ng/blog/2017/10/11/importance-of-employee-training-and-development/